Personal usage will negate the losses from the cost seg in the first year, so we suggest avoiding it.

The interest rate is 7%, so we suggest this property is for someone who wants to get into Lease Options and meets the other requirements such as adequate reserves and credit.That means, they buy the property, they wind up with $50,000 in equity and they do a Lease Option to a buyer who doesn't currently own a house, but wants to.

I'm curious, at what point does this reflect poorly on PM and suggest I should get antoher PM?

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

Any contractor recommendations or lender suggestions for short-term financing?

So, Ray, what do you suggest we do?

Dont know where to start any suggestions will be great thank you For the 300k property they are probably not going to let you pull any money out based on the amount of credit you already owe.

If you are newer I'd suggest a house hack unless you can rinse/repeat this process again. 

Quote from @Jaycee Greene: @Basit Siddiqi How about I suggest 5a: Do what 5) says but add to it, "hire a Fractional CFO to handle most of this"?

I would suggest going to the find a lender tab here on bigger pockets to find a local lender who has the same products.